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Online gambling legislation is a losing bet for California

EDITORIAL August 21, 2011 The Sacramento Bee

Whether or not they are in support or opposition, lawmakers are unlikely to take decisive action until the last possible moment on two bills to legalize Internet poker and other forms of gambling in California.
Why?


These two bills are the ultimate "juice bills" of the session. Indian tribes and other groups on various sides of this issue are spending huge sums on lobbying, campaign contributions and consulting. The more this issue drags out, and the more lawmakers can gin up drama and stress over it — the more money will flow through the Capitol.


The Morongo and San Manuel bands of Indians in Southern California are key players, having spent more than $640,000 lobbying in 2010 and the first half of 2011.


They and four card rooms support a bill by Sen. Lou Correa, D-Santa Ana, that would legalize online poker but not other kinds of Internet gambling. Yet the California Tribal Business Alliance and other groups oppose Correa's bill, saying it is unfair to their interests. The CTBA has urged lawmakers to hold off on Correa's bill and another one by Sen. Rod Wright, D-Inglewood, which would legalize all kinds of Internet gambling.


It is tempting to applaud all the cash these tribes and gambling interests are sending through Sacramento. Goodness knows the local economy needs some kind of stimulus.


But neither of these bills is a good fit for California. In fact, both are a bad bet.
The federal government has banned Internet gambling, and while states believe they have the authority to legalize it and tax such gambling on their own, their ability to confine such enterprises within state borders is dubious at best.
The Internet is a tiger that can't easily be leashed. Until recently, offshore Internet gambling sites were flourishing. The only thing that brought them down is an ongoing federal prosecution that resulted in indictments of top executives this spring.


State leaders are enticed by the tax revenue online gambling could generate, but these bills are no cure-all for the state's ills. Indeed, legalized online poker would just shift revenue from one place to another, while adding to problem of addictive gambling. That's not the kind of medicine that California's economy needs.

 


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